A Kansas technology executive has been sentenced to 19 years in federal prison for orchestrating a healthcare fraud operation that caused Medicare and other federally funded health programmes to pay more than $450 million for medically unnecessary equipment.
Brett Blackman, 43, of Johnson County, Kansas, was convicted after a 23-day jury trial that concluded in April 2026. Prosecutors said he used an internet-based platform to generate fraudulent doctors’ orders and prescriptions, enabling suppliers and pharmacies to submit claims worth more than $1 billion to government healthcare programmes and other insurers.
The scheme targeted hundreds of thousands of Medicare beneficiaries across the United States, including elderly and disabled people. Authorities said the operation relied on aggressive telemarketing, paid referrals and medical orders that falsely suggested patients had received proper medical assessments.
Blackman Used Healthcare Software to Generate Fraudulent Prescriptions
Blackman owned and controlled HealthSplash, serving as its chief executive. In September 2017, the company acquired Power Mobility Doctor Rx LLC, known as DMERx, an online platform used to generate doctors’ orders for durable medical equipment and prescriptions for other products.
According to evidence presented in court, Blackman and his co-conspirators used the platform to connect medical equipment suppliers, pharmacies and marketers with telemedicine companies willing to arrange signed orders in exchange for illegal kickbacks and bribes.
The participants allegedly received a share of the proceeds for directing business through the system.
Although the orders appeared to show that doctors had examined and treated Medicare beneficiaries, prosecutors said the physicians were frequently paid to sign the documents without meaningful contact with the patients. In some cases, there was no interaction between the doctor and the supposed patient at all.
More Than 346,000 Medicare Beneficiaries Affected
The scale of the operation was reflected in the claims submitted through the platform.
Medicare was fraudulently billed for orthotic braces for more than 346,000 beneficiaries as a result of the scheme. On average, approximately four braces were billed for each beneficiary.
Evidence presented at trial also showed that more than 1,200 beneficiaries had at least 21 orthotic devices prescribed through the DMERx platform, raising further concerns about the volume of unnecessary equipment being ordered.
Across Medicare and other federal healthcare benefit programmes, suppliers and pharmacies submitted claims exceeding $1 billion. The programmes and other insurers ultimately paid more than $450 million based on those claims.
Undercover Investigation Exposed How the Scheme Worked
Trial evidence included testimony from an undercover agent posing as a Medicare beneficiary, who was contacted through a foreign call centre.
The agent was pressured to agree to receive multiple braces before a doctor signed orders for the equipment through Blackman’s platform.
One order claimed that the physician had performed various medical tests requiring an in-person examination, even though the doctor had not spoken to the undercover patient.
Prosecutors presented the evidence as an illustration of how the system could produce documentation that appeared medically legitimate despite the absence of the examinations and consultations described in the records.
Investigators Say Fraud Was Concealed to Avoid Medicare Audits
Authorities said Blackman and his associates attempted to disguise the operation through sham contracts and changes to the medical documentation.
According to evidence presented at trial, the conspirators manipulated doctors’ orders to reduce the likelihood of Medicare audits, including by removing references to telemedicine from the documents.
The alleged concealment helped suppliers submit claims that appeared to meet programme requirements, even though the underlying orders were fraudulent.
Blackman was convicted of conspiracy to commit healthcare fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States and make false statements in connection with healthcare matters.
The court will determine his restitution and forfeiture obligations at a later date.
Justice Department Says Sentence Sends Warning to Healthcare Fraudsters
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said the case demonstrated the scale of the operation and the need to hold its organisers accountable.
“The Department of Justice and our agency partners dismantled one of the largest telemedicine fraud schemes ever,” McDonald said, adding that the sentence addressed an operation designed to take money from the Medicare trust fund.
He said the department would continue using its resources to pursue complex fraud operations involving platforms such as DMERx.
Federal officials also stressed the impact of healthcare fraud on veterans and military families, whose benefits are funded by taxpayers.
Department of Veterans Affairs Inspector General Cheryl L. Mason said the sentence sent a warning to anyone seeking to profit illegally from VA programmes and services.
FBI Miami Field Office Special Agent in Charge Brett D. Skiles said the scheme undermined the integrity of healthcare programmes intended to support people in need. He added that the FBI would continue working with other agencies to investigate complex fraud and protect public funds.
Acting Special Agent in Charge Nakia Martin Alexander of the Defense Criminal Investigative Service’s Southeast Field Office said fraud involving TRICARE diverted resources intended for service members and their families.
Co-Defendant Previously Received a 15-Year Prison Sentence
Blackman was not the only executive prosecuted in connection with the operation.
In December 2025, co-defendant Gary Cox was sentenced to 15 years in prison for his role in the $1 billion fraud conspiracy.
The investigation involved the Department of Health and Human Services Office of Inspector General, the FBI, the Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service.
Assistant Deputy Chief Darren C. Halverson and Trial Attorney Reginald Cuyler Jr., both from the Justice Department’s Health Care Fraud Section, prosecuted the case.
Justice Department Expands Efforts to Combat Healthcare Fraud
The Justice Department announced the creation of its Fraud Division on April 7, describing it as part of a wider effort to investigate and prosecute fraud against the American public.
The department said its work supports President Donald Trump’s Task Force to Eliminate Fraud, a government-wide initiative chaired by Vice President J.D. Vance that aims to address fraud, waste and abuse in federal benefit programmes.
Separately, the department’s Health Care Fraud Strike Force Programme has operated across federal districts since 2007. According to the Justice Department, the programme has charged more than 6,200 defendants who collectively billed federal healthcare programmes and private insurers for more than $45 billion.
The Centers for Medicare & Medicaid Services and the Department of Health and Human Services Office of Inspector General are also working to hold healthcare providers accountable for involvement in fraudulent schemes.
Blackman’s 19-year sentence marks a significant outcome in a case that prosecutors said exploited vulnerable beneficiaries and diverted hundreds of millions of dollars from healthcare programmes intended to provide essential services.
